Imperial Group Pension Trust Ltd v Imperial Tobacco Ltd

[1991] 1 WLR 589

Ratio Decidendi

An employer exercising powers under a pension scheme is subject to an implied duty of good faith — it must not exercise its powers for an improper purpose or perversely.

Facts

The employer proposed amendments to the pension scheme that would have affected members' benefits. Members challenged the employer's power to make such changes.

Judgment Summary

Browne-Wilkinson VC held that the employer's powers under the scheme are subject to an implied obligation of good faith, analogous to the duty implied in employment contracts.

Key Quotes

"The employer must not exercise its rights under the scheme for an improper purpose or perversely."
— Browne-Wilkinson VC

Subsequent Treatment

Applied

Applied in subsequent pension scheme amendment disputes.